Syria Faces Post-Regime Collapse Recovery Amid Regional Instability, Major Power Grid Deal

Syria is at a pivotal moment following the collapse of Bashar al-Assad’s regime in late 2024, with a new transitional government promising inclusivity and reform while regional powers and the West cautiously reengage diplomatically and economically. U.S. President Donald Trump is considering re-admitting Turkey into the F-35 program as part of a deal that could normalize Syria’s status through Turkish-backed zones, raising concerns about empowering proxy governance under Ankara’s control. Despite sanctions relief from the U.S., EU, and UK, Syria faces a complex investment environment shaped by Russia’s dominant influence and unresolved debt issues, with reconstruction efforts focused on energy, construction, and agriculture sectors. Regional instability, particularly from escalating Israel-Iran tensions spilling into Syria, threatens to undermine fragile recovery efforts and deter refugee returns, even as significant infrastructure deals, such as Qatar's $7 billion power grid investment, signal cautious optimism. Advocates urge separating political grievances from humanitarian realities to enable Syria's economic revival, emphasizing that true peace requires international collaboration and access to banking and investment. However, the interplay of geopolitical rivalries, proxy controls, and lingering sanctions means Syria’s path to stable recovery remains fraught and uncertain.